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Investment in Associate

SSaher5y ago
Hello! Would PUP would be subtracted from the Cost of investment in Associate if the Associate sells to the Parent ?
P2-D2P2-D2Tutor5y ago#1
Hi, No, the PUP is deducted from the share of profit of associate, regardless of the direction of the sale. Thanks
SSaher5y ago#2
Umm okay.. but the Kaplan study text says that PUP should be subtracted from the Investment in Associate regardless of the direction of the sale.
NNikita5y ago#3
That's right, but it's a double entry: Dr Share of Profit of Associate __Cr Investment in Associate
P2-D2P2-D2Tutor5y ago#4
There's your answer! Thanks
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